Views sought on derivatives limits

Hong Kong's securities regulator yesterday launched a consultation proposing to increase the position limits for exchange-traded derivatives based on the three major stock indices in the city, to keep pace with market development.

The proposals will lift the current position limits for the futures and options contracts by 50 percent to 15,000 position delta for the Hang Seng Index, 108 percent to 25,000 position delta for the Hang Seng China Enterprises Index, and 43 percent to 30,000 position delta for the Hang Seng Tech Index, the Securities and Futures Commission wrote in its website.

These will enable the city's derivatives markets to keep pace with the growth in the market capitalizations of major stock indices and trading volumes of their constituents over the past years, without introducing additional risks to the markets, it said.

Separately, the SFC has commenced criminal proceedings against businessman and film producer Raymond Wong Pak-ming for insider dealing involving the shares of an entertainment company.

No plea was taken and the court adjourned the case to March 27. He was granted bail on HK$200,000 cash and other conditions related to his residency.

Staff reporter